USPS No Longer Contributing To Employee's Pensions

In the latest indication of the United States Postal Service's
dire financial straights, the Associated Press is
reporting that the agency will will stop contributing to
the Federal Employees Retirement System (FERS).

The move will free up $800 million in badly needed cash for the
current fiscal year, the Postal Service said in a
statement.

“We will continue to transmit to OPM employees’ contributions to
FERS and also will continue to transmit employer automatic and
matching contributions and employee contributions to the Thrift
Savings Plan,” said Anthony Vegliante, chief human resources
officer and executive vice president.

The Postal Service has cut over 100,000 career positions in the
last four years, for a savings of $12 billion. Nevertheless, the
agency ended the last fiscal year $8 billion in the red, and its
outlook for this year is not much better.

In the statement, the Postal Service reasserted that it needs the
authority to cut Saturday mail delivery as a way to close its
budget gap —something Congress has been unwilling
to give.

The good news is, the agency pension account currently shows a
$6.9 billion surplus.